Supreme Court: BSU can detain transcripts

MUNCIE – The Indiana Supreme Court has ruled that Ball State University does not have to turn over the official college transcript of a student who left the school with an unpaid tuition balance exceeding $9,000.

“We asked the court to take a look at the ... question of whether or not colleges and universities have a common law lien over the transcript of a student who fails to pay ... loans, tuition or fees, and the court agreed that in fact there is a common law lien,” BSU attorney Jim Williams told The Star Press on Monday. “This is an important part of the toolbox any college or university in Indiana uses to collect outstanding debt.”

In 2013-14, unpaid tuition and fees totaled $10.7 million at Ball State. In that same school year, the university wrote off $811,568 in tuition/fees from accounts receivable.

The University of Indianapolis and Butler, Indiana Wesleyan and Taylor universities became “friends of the court” who joined Ball State in pressing its position.

The Supreme Court also ruled that Ball State could not be “dragged ... by the heels” into divorce court as a party to a dispute between a mother and a father over their child’s higher education expenses. Such disputes are becoming more common.

In 2013, Lake County Circuit Court Judge George Paras added BSU as a defendant when Jennifer Irons, Crown Point, filed a petition in trial court that asked her ex-husband Scott to pay their daughter Jordan’s college expenses.

The daughter, from Crown Point, attended Ball State in 2011-12 but withdrew in the spring semester of 2012 owing more than $9,000 in tuition/fees. She complained that she was unable to enroll at Indiana University Northwest without her official BSU transcript.

Paras ruled that Ball State was a necessary party to determine Jordan’s future educational expenses.

“ ... this situation leaves the court in a quandary since future college expenses cannot be completely determined until Jordan enrolls at a specific institution,” Paras wrote. “Whether it be IU Northwest or some other institution, the court, not having a crystal ball, needs to know the amount of college expense expected so the court may factor that information into a decision regarding, amongst other factors, the parties’ ability to contribute.”

But Supreme Court Justice Robert D. Rucker wrote, “The record is devoid of any evidence that Mother attempted to obtain financial information from IU Northwest or any other source before seeking to join Ball State in this action. There is also nothing in the record before us suggesting that without Ball State as a party, Mother would be unable to provide the trial court information relating to future expenses at IU Northwest or any other institution for that matter.”

Williams has compared a common law lien to a mechanic’s lien. “The mechanic has a lien on the car until the bill is paid,” he told The Star Press last year. “Technically, the mechanic can withhold the car until the bill is paid.”

The Supreme Court unanimously ordered the trial court to dismiss Ball State from the divorce action. Ball State’s appeal of the trial court’s decision had been dismissed earlier by the Indiana Court of Appeals, after which BSU appealed to the Supreme Court.

Michael Reilly, director of the American Association of Collegiate Registrars and Admissions Officers, told The Star Press it is very common for schools to place holds on transcripts.

“It really is one of the most significant incentives for students to pay their debt,” Reilly said.

Noting that Irons was unable to enroll at IU Northwest without her Ball State transcript, Reilly said, “The receiving side is requiring it, too, so it happens on both ends. One reason the receiving schools needs the transcript is to verify that a student has left the other school in good standing, he said.